Do you Carefully Check Your 401(k) Plan Statement?BondBeebe
John Merchant, CPA, CFE
Many individuals who participate in 401(k) plans sponsored by their employer do not carefully check their accounts on a regular basis. A recent report from the United States Department of Labor (DOL) shows that participants should regularly check their statements, and check them carefully. The DOL launched an investigation of the administration of a plan in California as a result of complaints from participants. As a result, the former owner of the sponsor company was convicted in the Superior Court of California, Alameda County on two counts of grand theft.
The former owner of the sponsor company had apparently abused his position as trustee of the plan in order to misappropriate funds from the accounts of participants for his own benefit. Fortunately, those participants studied their account statements and knew that something was amiss. Their complaints led to the DOL investigation that eventually led to conviction and an order that the fraudster make restitution to those that he had defrauded.
Study your account carefully on a regular basis and seek explanations for any transactions or amounts that do not make sense to you. It is your money. Be sure to protect it.